Problem 2 Is th ere gender discrimination in professors salaries in a small coll

Question

Problem 2 Is th ere gender discrimination in professors salaries in a small college? To answer this questions we first consider the simple regres- sion model of Salary on Gender obtained from observations on 52 randomly selected professors in a small college, see minitab output that follows this problem. The variables are: Salary- academic year salary in dollars Gender, coded 1 for female and 0 for male a) Is the estimated regression of Salary on Gender statistically significant at = 0.01? (State and interpret the hypothesis test, state rejection rule and your conclusion) b) Interpret the coefficients in the estimated regression model of Salary

Explanation / Answer

a) yes, the estimated regression equation is Statistically significant because p value of 0.009 is less than 0.01, so we conclude that  the estimated regression equation is Statistically significant

b) For male , yearly average salary is constant at 104697 and for female the average salary decreased by 4623

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